Markey Announces Bill to Update E-Rate Program

E-Rate uses funds collected from telecom companies to subsidize school, library net access

By John Eggerton -- Broadcasting & Cable, 2/9/2010 3:29:14 PM

Rep. Ed Markey Tuesday (Feb. 9) announced a bill (HR 4165) to update the E-Rate program, which was created as part of the 1996 Telecommunications Act per instructions from Congress (Markey authored the original E-Rate bill).

The E-Rate program uses funds collected from telecom companies via the Universal Service Fund to subsidize access to telecommunications and Internet service by schools and libraries at discounted rates.

Markey said Tuesday that the new bill, which he christened E-Rate 2.0, goes beyond access to implement three pilot programs that would 1) provide vouchers for low-income students to buy residential broadband; 2) fund broadband equipment and service grants to some community colleges; and 3) allow some E-rate applicants to apply for discounted service and technologies for the use of E-books.

The bill would also allow the current $2.25 billion cap on the fund to be adjusted for inflation and streamline the application process.